Value Chain Management of Inditex

Running Head: INDITEX 0
Value Chain
Management
INDITEX
(Student’s Details)
9/5/2019

INDITEX 1
Contents
Executive Summary.........................................................................................................................2
Introduction......................................................................................................................................3
Value Chain of Inditex.....................................................................................................................3
Primary Activities........................................................................................................................3
Inbound Logistics.....................................................................................................................3
Operations................................................................................................................................3
Outbound logistics....................................................................................................................4
Marketing and sales..................................................................................................................4
Services....................................................................................................................................4
Secondary Activities....................................................................................................................4
Firm Infrastructure...................................................................................................................4
Human Resource Management................................................................................................5
Technology development.........................................................................................................5
Procurement..............................................................................................................................5
Target Customers.............................................................................................................................5
Key suppliers...................................................................................................................................5
Partners............................................................................................................................................6
Competitors......................................................................................................................................6
Logistics and Supply Chain Analysis..............................................................................................6
Conclusion.......................................................................................................................................7
Recommendations............................................................................................................................7
References List................................................................................................................................8

INDITEX 2
Executive Summary
Value chain is the process which includes every stage between the manufacturing of
product and reaches the product to the end user. The following report described about the value
chain management, supply chain, logistics, target customers, key suppliers, partners and
competitors of the Inditex. The report also evaluated the performance of the logistics and supply
chain of Inditex.
Value chain management has nine stages which are distributed in two parts. First part is
primary activities which involve the inbound logistics, operations, outbound logistics, sales and
marketing and services. Second part is secondary or support activities which involve human
resource management, firm infrastructure, technology development and procurement. The report
comprised of all this information.

INDITEX 3
Introduction
Value chain management refers to a process of produce the good and it is comprises of all
the information about the activities of company such as financial flow, human resource
department, logistics, supply chain and stores. The following report will describe about the value
chain management of Inditex. Inditex is one of the globe’s leading fashion retailers and it has
eight fashion brands. Its most popular brand is Zara and everyone is aware about the popularity
of Zara. The other brands of Inditex are Massimo Dutti, Pull&Bear, Bershka, Oysho,
Stradivarius, Uterque and Zara Home (Inditex, 2019a). Inditex has more than 7000 stores
throughout 96 markets and also selling products through online platforms in 202 markets
(Inditex, 2019b). It has very effective value chain. The following report will highlight the
stages of value chain management, target customers, partners, key suppliers, and competitors.
With all these things, report will also analyze and evaluate the functions of logistics and supply
chain.
Value Chain of Inditex
Value chain is a combination of primary and secondary activities of the company.
Primary activities include actions which are directly connected to creation and distribution of
products whereas secondary activities are actions which provide support to primary activities
(Inditex, 2019c).
Primary Activities
Primary activities comprise of inbound logistics, operations, outbound logistics,
marketing and sales and services.
Inbound Logistics
Inbound Logistics is a term which refers to the arrival process of raw material. In the
context of Inditex, it takes raw materials from different suppliers across 43 countries and its
preference of fabric is cotton. Its 50% of the products are manufactured in Spain and 25% of
products come from the Europe. Its 10 logistics centres are located in Spain.